Stock Market Update: Corporate Earnings Going Global

Markets oscillate on many factors — from interest rates and risk appetite, to headline news and the economy. But in the end, it comes down to earnings.The easiest way to visualize this is by breaking down market returns into the underlying components. In the short term, multiple expansion or contraction is often the biggest driver, including the past year. However, over the long term it is earnings growth that dominates as a driver of market returns.The chart below shows the return decomposition for the ...